The US and Iran have signed an interim agreement aimed at ending their latest war and setting out a 60-day framework for a broader settlement, in a deal that immediately halts hostilities and opens the Strait of Hormuz to shipping.
The deal was signed by US President Donald Trump and Iranian President Masoud Pezeshkian, with Pakistani Prime Minister Shehbaz Sharif confirming key details of the agreement.
“The memorandum shall enter into force with immediate effect and, as a first step, the Islamic Republic of Iran will instantly reopen the Strait of Hormuz and the United States of America will immediately lift the naval blockade,” Mr Sharif wrote on X. Ships would be allowed to transit freely for an initial two-month period, he added.
Quote
We’re going to bomb the hell out of them if they violate the agreement. I don’t want them to. I want them to honour the agreement.
US President Donald Trump
The 14-point agreement lays out a broad ceasefire across several fronts, sanctions relief for Iran, the unfreezing of its assets and the creation of a $300 billion reconstruction fund.
It also includes Iranian commitments not to pursue nuclear weapons and to place portions of its enriched uranium stockpile under International Atomic Energy Agency supervision for monitoring and “down-blending” on site, a compromise that stops short of the removal of material sought by Washington.
Speaking during the G7 summit in France, Mr Trump said the deal could mark a turning point but warned US military action could resume if Iran fails to comply. “We’re going to bomb the hell out of them if they violate the agreement,” he said. “I don’t want them to. I want them to honour the agreement.”
Iran sought to present the deal as a victory. State media released photographs of what is believed to be the first agreement signed by both a US and an Iranian president since the Islamic republic’s founding in 1979.
Tehran would implement its commitments in tandem with Washington meeting its pledges, chief negotiator Mohammad Bagher Ghalibaf said. “It’s action in return for action,” he said on state television. "Even if there is a final agreement and it is endorsed by a UN Security Council resolution, it is still not trustworthy. Our guarantee is Iran’s power."
Smoke billows from southern Lebanon, as seen from Nabatieh, following Israeli strikes reported by local residents on June 17, 2026. Reuters Info
The accord follows months of conflict that erupted after the US and Israel launched a military campaign against Iran on February 28, which included the killing of Iran’s 86-year-old supreme leader Ayatollah Ali Khamenei and senior military commanders. The war rapidly escalated into a wider regional conflict, killing thousands of people, mostly in Iran and Lebanon, and fuelling global economic disruption, including rising energy prices and inflationary pressures.
Under the agreement, hostilities are to end immediately across all theatres, including Lebanon, where fighting between Israel and Hezbollah has continued intermittently despite earlier ceasefire efforts. The memorandum also calls for a halt in cross-border attacks and a gradual de-escalation framework intended to hold during the 60-day negotiating window.
However, Israeli soldiers and Hezbollah gunmen clashed overnight over a strategic ridge south of Nabatieh, as Israeli forces reportedly attempted to secure the Ali Al Tahir heights despite the broader ceasefire framework extending to Lebanon. Shelling continued in surrounding villages, and at least one person was killed and another wounded in a drone strike on a vehicle between Kfar Tebnit and Nabatieh.
Implementation talks are expected to continue in Switzerland, with the Swiss Foreign Ministry saying the US and Iran are still due to meet in the resort of Burgenstock, alongside mediators Pakistan and Qatar, for initial discussions on carrying out the agreement. It said no further details had been released.
The Swiss statement came after Iranian Foreign Ministry spokesman Esmaeil Baghaei had said that, with the agreement already signed, a planned signing ceremony in Switzerland on Friday was cancelled, but negotiating teams were still expected to travel.
Minesweeping operation
Oil markets reacted to the announcement with initial declines, with Brent crude falling below $80 a barrel on expectations of the Strait of Hormuz reopening, before partially rebounding after Mr Trump’s warnings of renewed military action.
Early signs of movement emerged in the Strait of Hormuz on Thursday morning, with a laden LNG carrier and an empty products tanker beginning transit shortly after the deal came into effect.
The LNG carrier Mraikh, chartered by QatarEnergy, and the empty products tanker Ye Chi, linked to China’s Cosco Shipping, both entered the strait from the Gulf along Tehran-approved routes. Traffic remained limited, with only a handful of vessels crossing hours after the announcement.
Early signs of movement emerged in the strait on Thursda…
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